ASX Large Caps: Rising bond yields thump Tech, Retail stocks

ASX 200 seesaws to close flat
Aussie 10-year bond yields at 7-year high
China’s inflation rises and beats expectations

The ASX 200 opened higher this morning but lost momentum by midday as Aussie bond yields marched to multi-year highs.

At the close of day, the ASX 200 benchmark closed flat while the 10-year bond yield surged past 3%, its highest level since 2015.

It follows a similar spike in US Treasury yields on Friday, where the 10-year yield rose to a three-year high of 2.70%.

Bond yields have been moving higher since the US Fed signalled last week it would aggressively hike rates and reduce its massive bond holdings at $US95 billion a month starting in May.

Australia’s Reserve Bank has also opened the door for a potential rate hike by as early as June, raising concerns of a real estate bubble bust.

By sector, rates sensitive stocks like Tech and Discretionary were the worst performers today, down by around 1% each, while Financials led the market.

Meanwhile, China’s producers’ costs surged 8.3% and consumer inflation climbed 1.5% year on year. Some analysts have warnted that persistently high inflation and lockdowns could shave 2% of China’s GDP.

BIG CAP WINNERS

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Code	Name	Price	% Change	Volume	Market Cap
ZIM	Zimplats Holding Ltd	33.93	9.9%	23,349	$3,322,774,225
CXL	Calix Limited	8.62	9.0%	783,915	$1,277,004,891
LKE	Lake Resources	2.00	7.5%	30,124,293	$2,376,229,013
GNC	GrainCorp Limited	9.77	6.3%	4,208,000	$2,103,183,221
APM	APM Human Services	3.37	6.3%	1,191,154	$2,907,466,769
GRR	Grange Resources	1.285	6.2%	6,457,325	$1,400,379,825
WSA	Western Areas Ltd	3.845	5.3%	3,815,290	$1,173,997,516
PRU	Perseus Mining Ltd	1.86	4.2%	8,210,630	$2,202,812,178
NST	Northern Star	10.65	3.7%	2,975,844	$11,965,846,300
IRE	IRESS Limited	11.63	3.5%	285,488	$2,131,422,721
RRL	Regis Resources	2.11	3.4%	4,777,963	$1,539,743,648
PSI	Psc Insurance Ltd	4.44	3.0%	30,158	$1,503,996,102
NUF	Nufarm Limited	6.59	3.0%	1,851,004	$2,432,122,598
SLR	Silver Lake Resource	2.1	2.9%	1,529,583	$1,897,544,660

Lake Resources (ASX:LKE) and Ford Motor Company have signed a non-binding MoU to negotiate a lithium offtake from the Kachi Project. The offtake deal is approximately 25,000 tonnes per annum to support Ford’s aggressive electric vehicles acceleration.

IGO Ltd (ASX:IGO) agreed to lift its acquisition price of ASX-listed Western Areas (ASX:WSA) to $3.87. The upgrade follows an independent report saying that the initial $3.36 offer was not in the best interest of WSA shareholders, considering the continued strong nickel price performance.

BIG CAP LOSERS

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Code	Name	Price	% Change	Volume	Market Cap
AVZ	AVZ Minerals Ltd	1.055	-5.8%	28,187,044	$3,952,177,318
YAL	Yancoal Aust Ltd	4.87	-5.8%	794,486	$6,826,671,889
ERA	Energy Resources	0.37	-5.1%	352,159	$1,439,639,447
ASM	Ausstratmaterials	7.41	-5.1%	561,669	$1,089,541,907
A2M	The A2 Milk Company	4.79	-5.0%	7,590,989	$3,748,028,901
VUL	Vulcan Energy	9.05	-4.3%	880,481	$1,245,362,551
EBO	Ebos Group Ltd	37.45	-4.2%	23,696	$7,377,460,374
BRN	Brainchip Ltd	0.91	-4.2%	7,945,079	$1,628,644,037
HTA	Hutchison	0.082	-3.5%	2,000	$1,153,663,229
MIN	Mineral Resources.	59.14	-3.5%	930,357	$11,576,517,934
PLS	Pilbara Min Ltd	3.09	-3.4%	16,909,975	$9,525,869,418
MP1	Megaport Limited	12.48	-3.3%	435,254	$2,039,121,797

Adore Beauty (ASX:ABY) fell 10% to its all time low today on concerns that higher mortgage rates could force people to buy less beauty products. The ABY stock price has lost more than 70% over the past 12 months.

At Stockhead we tell it like it is. While Lake Resources is a Stockhead advertiser, it did not sponsor this article.